India’s largest NBFC public issue, HDB Financial Services, received a strong response, as the mega offer was subscribed fully on Day 2 itself. The IPO has been subscribed 1.16 times, as it received bids for 15.12 crore shares against 13.04 crore shares on offer. The IPO has been priced at ₹700-740 per share. Today is the last day to subscribe to the mega ₹12,500-crore IPO. Bids can be made for a minimum of 20 Equity Shares and in multiples of 20 Equity Shares thereafter.
The total offer size of equity shares, with a face value of ₹10 each, comprises a fresh issue worth ₹2,500 crore and an offer for sale of up to ₹10,000 crore by HDFC Bank.
Subscription details
Up to 50 per cent of the offer is reserved for QIBs, with a minimum of 15 per cent for non-institutional investors, and up to 35 per cent is reserved for retail investors. The IPO also has reservations for HDFC Bank shareholders (up to ₹1,250 crore or 1.78 crore shares) and employees (2.85 lakh shares). The employee portion was the most active, as the staff quota was oversubscribed 2.97 times, followed by NII (2.29 times). The quota of shareholders also saw a strong response (HDFC Bank shareholders) by 1.69 times. The quota reserved for QIB was subscribed 0.90 times, while that of retail investors was 0.64 times, respectively.
Utility of funds
The company proposes using the fresh issue’s net proceeds to augment its Tier—I Capital base to meet its future capital requirements, including onward lending under any of its business verticals, i.e., Enterprise Lending, Asset Finance, and Consumer Finance. Further, a portion of the proceeds from the Fresh Issue will be used to meet Offer Expenses.
LIC and others as anchors
Meanwhile, HDB Financial Services has allotted 4,55,27,026 Equity Shares to anchor investors at the upper price band of ₹740 per equity share , with a face value of ₹10 per share, and raised ₹3,368.99 Crore. Some of the marquee investors include the Life Insurance Corporation of India, ICICI Prudential MF, Nippon Life India MF, BlackRock, Axis MF, Aditya Birla Sun Life MF, UTI MF, Schroder International Selection Fund, and Goldman Sachs Funds, among others.
JM Financial Limited, BNP Paribas, BofA Securities India Limited, Goldman Sachs (India) Securities Private Limited, HSBC Securities and Capital Markets (India) Private Limited, IIFL Capital Services Limited (Formerly known as IIFL Securities Limited), Jefferies India Private Limited, Morgan Stanley India Company Private Limited, Motilal Oswal Investment Advisors Limited, Nomura Financial Advisory and Securities (India) Private Limited, Nuvama Wealth Management Limited, UBS Securities India Private Limited are the Book Running Lead Managers to the offer.